MicroStrategy’s Market Cap Balloons Amid Bitcoin Bet

MicroStrategy was a first mover to add bitcoin to its balance sheet, and the company has never looked back. Now Michael Saylor, MicroStrategy’s CEO, has tipped his hand to the company’s future plans, which are likely to include buying more bitcoin. Based on MicroStrategy’s stock price, investors can’t get enough of bitcoin either.

After buying approximately 9,000 bitcoins in the third quarter,  MicroStrategy is prepared to raise more capital for its bitcoin plans. Saylor stated in the company’s Q3 earnings report,

“We will continue to evaluate opportunities to raise additional capital to execute on our bitcoin strategy.”

The company doled out about $420 million for the bitcoins in Q3 at an average price of $46,876 per coin, bringing its total to approximately 9,000 coins purchased in the quarter. Meanwhile, the bitcoin price is currently trading above $61,000. MicroStrategy’s approach is to buy and hold bitcoin for the long term regardless of any short-term blips along the way.

Long-Term View

The third quarter came to a screeching halt before bitcoin embarked on its latest bull run in which it has tacked on close to 40% since late September. As a result, MicroStrategy actually reported impairment losses of more than $750 million related to its bitcoin portfolio in the quarter.

Investors seem to be focused on the long-term as well and have rewarded MicroStrategy for its bitcoin exposure. MicroStrategy’s market cap has ballooned by nearly 90% year-to-date to $7.5 billion as signs of bitcoin adoption have emerged. Today shares are up 2%.

Crypto Adoption

Billionaire tech entrepreneur Mark Cuban is doing his part to accelerate bitcoin adoption on the retail side. The NBA’s Dallas Mavericks team, of which Cuban is the owner, has promised to direct $100 in bitcoin to fans who download a crypto trading app called Voyager. To qualify, users must not only download the app but also open an account, deposit $100 and complete a trade.

Dallas Mavericks Digital Content Manager, Bobby Karalla, was quick to point out that participants can also buy meme coin Shiba Inu on the Voyager app. Shiba Inu has risen to stardom in the cryptocurrency community this week as its market cap has skyrocketed past Dogecoin’s in a surprising run.

Meanwhile, Adam Aron, CEO of movie chain AMC Entertainment, is polling his followers about demand for Shiba Inu payments at the theater.